The consortium spearheading the development of Japan’s first integrated resort (IR) in Osaka has secured a loan agreement valued at $3.4 billion from a group of banks, according to local media reports.
The venture, Osaka IR Corporation, a collaboration between American gaming giant MGM Resorts International and local partner ORIX, has inked the deal with MUFG Bank Ltd and Mitsui Banking Corporation. This agreement, described as the largest co-financing arrangement in Japan’s history, marks a major step forward for the project.
According to reports, two affiliated companies of Hankyu Hanshin Holdings have also opted to invest in the venture. Hankyu Hanshin is a Japanese conglomerate with interests spanning private railway companies including Hankyu Corp and Hanshin Electric Railway Co Ltd.
The investment comes as part of an implementation agreement sanctioned by Japan’s central government last year. The total initial investment in the Osaka IR is anticipated to reach about $8.18 billion, with plans for the resort’s opening slated for 2030.
Groundwork for the project commenced in December on Yumeshima Island, marked by the pouring of the first concrete to address liquefaction concerns and stabilize the foundation. The liquefaction measures are expected to continue amid preparations for the upcoming Osaka Expo in 2025, with completion slated for April 2027, entailing an estimated cost of $173 million.
Moreover, MGM Resorts International is set to sponsor the United States Pavilion at the 2025 World Expo in Osaka. U.S. officials participated in a groundbreaking ceremony for their pavilion this week.
Upon its completion in 2030, MGM’s Osaka integrated resort is poised to feature Japan’s sole legal casino, boasting 2,500 hotel rooms across three distinct brands, along with 730,000 square feet dedicated to MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities.
Original article: https://www.yogonet.com/international/noticias/2024/04/29/71930-mgm-39s-osaka-ir-project-secures-34-billion-funding-through-bank-loan-agreement
